The real estate sector in Dubai is vibrant and offers property owners; they benefit from short terms renting through the related sites such as Airbnb. However, getting around the licensing procedures appears to be a very crucial factor in legal and effective operations. Currently, the short-term lets are regulated by the Dubai Department of Economy and Tourism, more commonly known as DET, where the hosts have to procure a license to operate and are directed to follow some strict rules.
Four basic processes involved in the processes of acquiring an Airbnb license in Dubai.
Research and Prepare: It is necessary to know more about the DET, depending on the type of property and its function.
Gather Documentation: Accumulate several documents: the documents confirming the ownership of the property/lease agreement, identification documents/personal identification, and other compliance documents.
Submit Application: Fill the short-term rental permit application form through the DET web application or by a walk-in visit to the DET office.
Pay Fees: Of course, fees differ according to the size of the property that needs cleaning. For instance, annual fees for permits depend on the size of the property and they go as low as AED 370 for a studio room and as high as AED 1,200 for properties of four or more bedrooms. Also, there is an access fee of an AED 320 per annum is required to use the application.
Complete Inspections: It has been found that properties have to pass health and safety check before they are approved.
Obtain Permit: Once your application is approved, you will be issued with your short-term rental permit in the next two to three days.
Ensure Insurance Coverage: Secure temporary renters’ and liability insurance for your house and your visitors.
Register for Tourism Fee: These are obtained after which hosts need to sign up in order to collect and transmit the Tourism Dirham fee which applies to short-term arrangements.
Restrictions of the area of operation and regulatory compliance
There are particular districts in Dubai where it is nonpermitted or prohibited to rent out accommodations for short-term stays in order to maintain the identity of the district. A very essential thing that one needs to consider is to always consult the local laws of the country or state of your residence when posting the property. Also it is important for your property to have health and safety measures such as fire precautions and some other certificates of compliance to building codes.
It will be anchored on professional assistance and on-going compliance.
Due to the many challenges that surround the licensing process as well as changing legal requirements, it is wise to engage the services of a property management firm or a lawyer. To run a smooth business in Dubai especially in the short term lettings business, practicing good compliance and keeping abreast with the changing regulations can greatly assist in staying out of the regulators’ bad books and more to the point could save you a fortune in penalties.
